Kerala is the latest state to join the league of states (TN,AP,Gujarat,MP, Rajasthan) which have final state solar energy policies in place. On 25th Nov 2013, the state finalized its state solar policy. The following are the highlights of the policy:

Kerala aims to have an installed capacity of 500 MW till 2017 and of 2500 MW by 2030. The policy will remain in force till any further solar energy policy is introduced.

Net-metering is available for all agencies that consume grid power and have some solar installations with govt. subsidies. KSERC will notify the pooled cost of power purchase and feed-in-tariff for procurement by KSEB.

Solar procurement obligation (SPO) is mandated for all HT/EHT consumers to the tune of 0.25 % till March 2015 (with annual increase of 10%). April 2015 on-wards the same shall become applicable for commercial & LT consumers also.

Incentives –

No open access charges for wheeling of solar power within the state.

No wheeling charges and T&D losses for solar captive generators.

Electricity Duty exempted for projects under the policy.

Banking facility (conditional) available for captive generators.

ANERT shall be the nodal agency for facilitating the provisions under the policy.

In a KSERC order dated – April 4 2013, KSERC has mandated that solar renewable purchase obligation will be applicable on KSEB from FY14 and for other licensees from FY15.

Solar RPO of the state is set as– 0.25 % for FY14 and is to increase by 10% every year.

Previously, in a 2010 order KSERC had mandated solar RPO to be effective from 2010 itself, but owing to sluggishness in developing solar generation and REC market, the same is made effective from FY14 for KSEB. This particular move can be seen as daunting for solar developers planning to invest in the state, given the fact the state is on the verge of finalizing its own solar policy 2013.